Janus Henderson said Tuesday that it partnered with The Guardian Life Insurance Company of America to manage $45 billion in assets and become the insurance firm’s investment grade public fixed income asset manager.
As part of the deal, jointly announced by the firms, Janus Henderson will manage the investment grade public fixed income portfolio for Guardian’s general account, including investment grade corporates and securitized credit.
Guardian investment professionals who now support the asset classes in the scope of the agreement will have the opportunity to join Janus Henderson, “providing continuity in the management of these assets while further enhancing Janus Henderson’s specialized insurance investment capabilities,” the firms said in a press release.
At the completion of the transaction, expected to be at the end of the second quarter of this year, Janus Henderson will manage a total of more than $147 billion in fixed income assets globally.
London-based Janus Henderson had about $379 billion in assets under management (AUM) as of Dec. 31, it said. The pact will make Janus Henderson one of the top 15 unaffiliated insurance asset managers in the world, according to the firms.
Guardian will gain equity warrants and other economic consideration and the firms will support a “shared goal of accelerating growth and creating value,” they said.
Guardian and Janus Henderson will co-develop proprietary, multi-asset solution model portfolios for Park Avenue Securities (PAS), Guardian’s dually registered broker-dealer and RIA, which has more than 2,400 advisors who handle about $58.5 billion of client AUM, the firms said.
Janus Henderson will develop investment solutions for PAS clients, bringing together Janus Henderson’s global investment allocation and solutions capabilities, including Janus Henderson Edge, its proprietary analytics platform, according to the firms.
Guardian will also commit up to $400 million to help accelerate Janus Henderson’s innovation in securitized credit, active fixed income products and other fixed income capabilities, the firms said.
Calling Guardian “one of the largest and most respected” U.S. life insurance firms, Ali Dibadj, CEO of Janus Henderson, said, “Together we will work to help shape the financial futures of millions of customers, creating a brighter future together.”
Dibadj added: “This multifaceted, innovative partnership, founded on a shared set of client-focused values, leverages our complementary strengths, creates alignment for mutual growth, and intends to achieve mutually beneficial outcomes for policyholders, our clients, shareholders, and employees. This strategic partnership also supports the execution of Janus Henderson’s client-led vision of amplifying our strengths in Fixed Income, Multi-Asset Solutions, and Model Portfolios.”
The “strategic partnership with Janus Henderson enhances Guardian’s investment and solutions capabilities and aligns our organizations for long-term, mutual growth,” according to Andrew McMahon, Guardian CEO and Chairman.
McMahon added: “Our shared culture of collaboration and dedication to our clients make them a natural partner for Guardian. By combining Guardian’s exceptional experience with Janus Henderson’s market-leading investment strategies, resources, and capabilities, we will be able to offer innovative investment and wealth management strategies that will benefit customers and policyholders for years to come.”
Mayer Brown advised Janus Henderson on the deal, and Debevoise & Plimpton advised Guardian.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
